UK annual house price growth slows to new 3-year low

Reuters Staff

2 Min Read

LONDON, Oct 7 (Reuters) - British house prices rose at their slowest pace in more than three years in the three months to September, figures from mortgage lender Halifax showed, adding to signs of a slowdown in the housing market after Britain’s Brexit vote in June.

The increase in prices slowed to 5.8 percent from 6.9 percent in the three months to August, Halifax, part of Lloyds Banking Group, said on Friday.

In monthly terms, prices rose by 0.1 percent from August, the first increase since June.

“The reduction in annual house price growth from a peak of 10.0 percent in March to 5.8 percent six months later remains in line with our forecast at the end of 2015,” Martin Ellis, Halifax housing economist, said in a statement.

“A lengthy period where house prices have risen more rapidly than earnings has put pressure on affordability, therefore constraining demand. Very low mortgage rates and a shortage of properties available for sale should, however, help support price levels over the coming months,” he said. (Writing by William Schomberg; editing by Peter Hobson)